BALANCE SHEET ANALYSISComplete the balance sheet and sales information using the following financial data:Total assets turnover: 1.2xDays sales outstanding: 36 daysInventory turnover ratio: 7xFixed assets turnover: 2.5xCurrent ratio: 1.5xGross profit margin on sales: (Sales- Cost of goods sold)/Sales = 20%Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.Balance SheetCashAccounts receivable.InventoriesFixed assetsTotal assetsSales$300,000Current liabilitiesLong-term debtCommon stockRetained earningsTotal liabilities and equityCost of goods sold45,00090,000

Given:Total asset turnover = 1.2Now, total asset turnover can be computed as:Substituting the…

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x Days sales outstanding: 36 days Inventory turnover ratio: 7x Fixed assets turnover: 2.5x Current ratio: 1.5x Gross profit margin on sales: (Sales Cost of goods sold)/Sales => 20% M Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Cash Accounts receivable Inventories Fixed assets Total assets Sales Balance Sheet $300,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ 45,000 90,000

Complete the balance sheet and sales information using the following financial data: Total assets turnover: 1.2x Days sales outstanding: 36 days Inventory turnover ratio: 7x Fixed assets turnover: 2.5x Current ratio: 1.5x Gross profit margin on sales: (Sales Cost of goods sold)/Sales => 20% M Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent. Cash Accounts receivable Inventories Fixed assets Total assets Sales Balance Sheet $300,000 Current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Cost of goods sold $ 45,000 90,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

BALANCE SHEET ANALYSIS
Complete the balance sheet and sales information using the following financial data:
Total assets turnover: 1.2x
Days sales outstanding: 36 days
Inventory turnover ratio: 7x
Fixed assets turnover: 2.5x
Current ratio: 1.5x
Gross profit margin on sales: (Sales- Cost of goods sold)/Sales = 20%
Calculation is based on a 365-day year. Do not round intermediate calculations. Round your answer to the nearest cent.
Balance Sheet
Cash
Accounts receivable.
Inventories
Fixed assets
Total assets
Sales
$300,000
Current liabilities
Long-term debt
Common stock
Retained earnings
Total liabilities and equity
Cost of goods sold
45,000
90,000

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Step 1: To compute-Sales

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Step 2: To compute-COGS

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Step 3: To compute-Total liabilities & equity

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Step 4: To compute-Inventory

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Step 5: To compute-Accounts receivables

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Step 6: To compute-Fixed assets

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Step 7: To compute-Cash

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Step 8: To compute-Current liabilities

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Step 9: To compute-Common stock

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